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Single Tenant Net Leased Starbucks For Sale

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Net leased Starbucks for sale in the Chicago MSA

Net leased Starbucks for sale in the Chicago MSA

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  • 1. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Starbucks 7101 South Stony Island Avenue Chicago, IL 60649
  • 2. NET LEASED INVESTMENT OFFERING www.bouldergroup.com 1) Confidentiality & Disclaimer 2) Executive Summary 3) Property Overview 4) Pro Forma Analysis 5) Aerial 6) Site Plan 7) Maps 8) Tenant Profile 9) Demographic Comparison Report 10) Location Overview 11) Contact Information TABLE OF CONTENTS TABLE OF CONTENTS
  • 3. NET LEASED INVESTMENT OFFERING www.bouldergroup.com The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. CONFIDENTIALITY & DISCLAIMER CONFIDENTITALITY & DISCLAIMER
  • 4. NET LEASED INVESTMENT OFFERING www.bouldergroup.com The Boulder Group is pleased to exclusively market for sale a single tenant net leased Starbucks property located in a densely populated part of Chicago, Illinois. The 1,696 square foot retail building was developed in 2004 at a heavily trafficked signalized intersection. Starbucks is committed to this location as evidenced by their recent decision to extend the lease for an additional ten years. Starbucks is an investment grade rated company with a Standard and Poor’s rating of A-. The Starbucks property is located at the signalized intersection of South Stony Island Avenue and East 71st Street approximately ten miles south of downtown Chicago. South Stony Island Avenue is a primary north-south thoroughfare with traffic counts in excess of 42,000 vehicles per day and is the only road with access to the Chicago Skyway Toll Road (Interstate 90) in Illinois. The property is located approximately one-half mile north from Interstate 90 and two miles east of Interstate 94, which experiences traffic counts in excess of 34,000 and 250,000 respectively. Additionally, there is a Metra train stop located across the street from the Starbucks property. Metra is the commuter rail division that serves the Chicago metropolitan area and over 80 million people per year. The Starbucks is located in a densely populated urban infill part of the city with over 250,000 people living within three miles and over 515,000 people living within five miles. The University of Chicago, one of the countries’ most prestigious universities and home to approximately 15,000 total students, is located ten blocks to the north of the Starbucks. Starbucks is committed to this location as evidenced by their decision to recently extend the lease for an additional ten years. The closest Starbucks location to the subject property is over 2.5 miles away. Furthermore, the closest Starbucks location with a drive thru is located over 4.5 miles away. There is a Bank of America located adjacent to the Starbucks property. Other retailers in the immediate vicinity include Jewel-Osco, Family Dollar, PNC Bank, Fifth Third Bank, Walgreens, Save-A-Lot, and AutoZone. There are 10 years remaining on the recently extended Starbucks lease that expires July 31, 2024. The lease features an 8.3% rental escalation in the primary term and 7.5% in each renewal option period. There are four 5-year renewal options remaining. Starbucks is an investment grade rated company (S&P: A-) and is publicly traded (NASDAQ: SBUX) with a market capitalization in excess of $53 billion. INVESTMENT HIGHLIGHTS • Starbucks is committed to this location as evidenced by their decision to recently extend the lease for ten years • Located in an urban infill part of Chicago at a heavily trafficked signalized intersection (50,000 VPD) • Long term lease with 10 years remaining • Investment grade tenant (S&P: A-) • Rental escalation of 8.3% in the primary term and 7.5% in each renewal option • Ten blocks south from the University of Chicago • Only Starbucks within a 2.5 mile radius • Located in a densely populated area with over 250,000 people living within a three mile radius EXECUTIVE SUMMARY EXECUTIVE SUMMARY
  • 5. NET LEASED INVESTMENT OFFERING www.bouldergroup.com PROPERTY OVERVIEW PROPERTY OVERVIEW Price: $1,563,600 Current Cap Rate: 6.50% Net Operating Income: $101,634 Rental Escalations 8.3% in Year 6, 7.5% in Option Periods Renewal Options: Four 5-Year Lease Commencement Date: July 16, 2004 Lease Expiration Date: July 31, 2024* Tenant: Starbucks Credit: A- (S&P) Year Built: 2004 Lease Type: NN (Roof, Structure, Parking Lot & HVAC) Building Size: 1,696 SF Land Size: 14,080 SF *Tenant has the one time opportunity to terminate the lease on July 31, 2020
  • 6. NET LEASED INVESTMENT OFFERING www.bouldergroup.com PRO FORMA ANALYSIS PROFORMA ANALYSIS 2014 Rent Base Rent $101,760 Total Rent $101,760 Recoveries CAM (Exclusing snow removal)2 $3,782 Snow Removal $3,151 Admin Fee3 $315 Tax $31,740 Insurance $1,146 Total Recoveries $40,133 Total Income $141,893 Expenses1 CAM (Excluding snow removal) ($4,223) Snow Removal ($3,151) Taxes ($31,740) Insurance ($1,146) Total Expenses ($40,259) Net Operating Income $101,634 1) For the purpose of this analysis, a 3% growth rate was applied to the 2013 expenses 2) There is a 7% cap on CAM (excluding snow removal); in 2013, the actual CAM cap was $3,534 3) Landlord can collect a 10% administrative fee on CAM and snow removal; as the CAM cap has been achieved for CAM, no administrative fee is collected
  • 7. NET LEASED INVESTMENT OFFERING www.bouldergroup.com AERIAL AERIAL N S.STONYISLAND OAK WOODS CEMETERY METRA TRACKS 42,000VPD 90
  • 8. NET LEASED INVESTMENT OFFERING www.bouldergroup.com SITE PLAN SITE PLAN S STONY ISLAND AVENUE DRIVE-THRU E71STSTREET METRATRACKS N
  • 9. NET LEASED INVESTMENT OFFERING www.bouldergroup.com MAPS MAPS Lake Michigan
  • 10. NET LEASED INVESTMENT OFFERING www.bouldergroup.com MAPS MAPS Lake Michigan
  • 11. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Starbucks (NASDAQ: SBUX) is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world with approximately 21,000 locations worldwide in 64 countries. There are over 13,000 locations in the United States of America. Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell pre-packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Since 1987, Starbucks has opened on average two new stores every day. Starbucks is publicly traded on the NASDAQ, SBUX, and has a market capitalization in excess of $53 billion. Starbucks is investment grade rated with a Standard and Poor’s rating of A-. Website: www.starbucks.com Credit Rating: S&P: A- Stock Symbol: NASDAQ: SBUX Market Capitalization: $53 billion Number of Locations: 21,000 Headquarters: Seattle, Washington Founded: 1971 TENANT PROFILE TENANT PROFILE
  • 12. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Population 1-mi 3-mi 5-mi Total Population 38,361 252,568 515,306 Total Households 16,918 106,437 199,818 Income Average Household Income $40,456 $45,811 $44,665 DEMOGRAPHIC COMPARISON REPORT DEMOGRAPHIC COMPARISON REPORT
  • 13. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement. The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness. www.cityofchicago.org LOCATION OVERVIEW LOCATION OVERVIEW
  • 14. NET LEASED INVESTMENT OFFERING www.bouldergroup.com CONTACT INFORMATION CONTACT INFORMATION 666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com

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